Last checked at 16 Jan 2018 07:00
16 January 2018
Van Elle Holdings plc
("Van Elle" or the "Group")
Statement regarding Carillion plc
Van Elle, the geotechnical engineering contractor offering a wide range of ground engineering techniques and services to customers in a variety of UK construction end markets, notes yesterday's announcement relating to Carillion plc ("Carillion") and comments as follows:
Van Elle carries out regular work for Carillion as a specialist lead sub-contractor, principally in respect of rail improvement and maintenance work where Network Rail is the end customer.
The Group successfully undertook several contracts for Carillion during December in respect of which, payment has been applied for but not yet been received, and work has continued on some of these contracts into January 2018. As a result, Van Elle's outstanding debt and work-in-progress exposure with Carillion is approximately £1.6m. The Group will engage with Carillion and its advisers (including the Official Receiver) to determine the status of outstanding payments, but shareholders should note that, in the event that Van Elle is unable to recover any monies owed, there would be an adverse financial impact on the Group.
The Group's order book includes further expected work with Carillion for the remainder of the current financial year and beyond. In total, this represents approximately £2.5m of anticipated revenue for the second half of the current year. It is too early to say whether there will be any effect on the commencement or completion dates of contracted work with Carillion, or what impact these developments will have on future work programmes, either in the rail sector or elsewhere, but the Group will monitor the situation closely and make further announcements as necessary.
Jon Fenton commented "While it is disappointing to note the Carillion announcement we continue to develop further our strong relationship with Network Rail and its principal contractors, and remain committed to developing high quality solutions in the rail division both for upgrade and maintenance work".
Enquiries:
Van Elle Holdings plc | 017 7358 0580 |
Jon Fenton, Chief Executive Officer | |
Paul Pearson, Chief Financial Officer | |
Instinctif Partners (Financial Public Relations) | 020 7457 2020 |
Mark Garraway | |
Rosie Driscoll | |
Peel Hunt LLP (Nominated Adviser and corporate broker) | 020 7418 8900 |
Charles Batten | |
Mike Bell Justin Jones |
Certain information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.